Read the monetary characteristics of Prime compared with BTC and ETH
I believe that you have a certain understanding of Prime（https://primematrix.io/） in the previous introduction. Taking this opportunity, I will take you to analyze the monetary characteristics of Prime compared with BTC and ETH, and lead you to understand the excellent and powerful points of Prime from the perspective of currency.
It was mentioned earlier that Prime is a 100% decentralized flexible currency. In addition, Prime is also a digital asset decentralization protocol for smart commodity currency. With the goal of creating fair and politically independent funds, the founders found that the prices of gold, silver, and other commodities were natural, fair, and independent. However, commodity currency could not effectively cope with the change in demand. Compared with the central bank currency, commodity currency had the shortcomings of high production cost and low supply elasticity, so it was not friendly to macro-economy.
To solve this problem, the founder of Prime designed a synthetic commodity, money, to transmit price information to the supply, just as thermal expansion can transfer nearby kinetic energy to the volume of material in nature. Under the Prime agreement, the monetary unit can avoid the deflation problem of fixed supply commodities without the adjustment of the central authority.
Technical features of Prime
In Prime, there is a publicly called function rebase, which users can call to initiate monetary policy operations every 24 hours.
The erc-20 (or, in the future, zkerc-20) contract will be deployed on every algorithm platform that can support token transfer and operation, most of which are simple algorithms.
Now, the project side hopes not only one “Primeerc-20”, but also one on each platform launched. Polkadot and cosmos are both committed to cross chain technology and may become future partners in the project to connect the vision parts.
Monetary characteristics of Prime compared with BTC and ETH
Bitcoin makes a promise to users: the fixed supply limit is 21m. Bitcoin can change many things about its protocol, and if it breaks this promise, it will no longer be bitcoin. ETH’s promise is: users will be able to exchange computing power through ETH.
Prime is a direct flexible supply policy that only responds to demand. We can sign a token contract on Ethereum or a copy of it on EOS, but they are “Prime” as long as they share the same pool of supply, are interchangeable, and are governed by the same monetary policy. Two different token implementations can be implemented on a single chain like ETHereum, a standard erc20, and a private but more gas zkerc20. At the same time, one of its characteristics is that the change of its value does not only refer to the influence of price but also the supply will act directly with price as a value change factor.
If one platform is more useful than the other, you might think these rates will be different. The author believes that more tokens should naturally flow to higher value platforms (through use or simple arbitrage), and will still lead to price parity over time.
Unlike contemporary synthetic goods, the change in the value of Prime networks can be attributed to supply in addition to the price. The combination of these two signals can be expressed as market value m, where M = P × s. There are three states of Prime supply policy Inflation, contraction, and balance.
Special points on Prime:
(1) Solve the deflation problem of bitcoin and other natural resources;
(2) It has the potential to become a blockchain killer application;
(3) There are practical mETHods for both short-term and long-term time ranges;
(4) It is innovative, and it really needs blockchain technology in project approval
Project summary:
Through the above description, we can understand the basic information of the project and the original intention of the project, as well as why Prime did not establish its own chain. By deploying on many different chains, it can take advantage of each platform as needed and can exchange value or trade between anyone. The market dynamics of Prime can not be determined by price alone. Besides price, the supply needs to be considered. The project hopes to use its own characteristics to automatically adjust the market volatility, so as to maintain the relative stability and volatility of the value of the whole token including the project.
